People have many preconceptions - and misconceptions - about the personal bankruptcy process. At Norred Law PLLC, we know that if you are considering filing for bankruptcy, you may have been in financial distress for some time and be unsure how bankruptcy will benefit you. We provide direct access to a business and personal bankruptcy attorney immediately, who will take the mystery out of this often-misunderstood process and improving your financial outlook.
When your finances become unmanageable, there are several different chapters in the Bankruptcy Code that can help.
Most individuals get control of their unmanageable debt by filing for one of three forms of bankruptcy protection:
Chapter 7: When filing a Chapter 7 bankruptcy in Texas, most of an individual's assets are exempt from the liquidation process. This means that most people can keep their homes, cars and other personal property. Most "normal" people don't have to lose anything. However, non-exempt assets belonging to a bankruptcy filer are sold to pay creditors, e.g., rental house, stamp or gun collection, recreational vehicle. This is why Chapter 7 bankruptcy filings are referred to as "liquidation". In most cases, remaining debts are discharged and the individual can begin the process of rebuilding a positive credit history almost immediately. One of the major challenges in Chapter 7 is to protect these items from the reach of creditors; these efforts require experienced representation that is not afraid of litigation.
Chapter 13: This form of bankruptcy involves developing a three- to five-year payment plan to pay creditors from your disposable income. Secured creditors (usually a house or car) must be paid in full, or at least caught up. Unsecured creditors may be paid a fraction of what they are owed. Chapter 13 can be a wise course of action for homeowners who are behind on their mortgage because they were unemployed but can get caught up slowly. Chapter 13 is also a good choice for individuals who do not qualify for Chapter 7 bankruptcy.
Chapter 11: This is similar to Chapter 13 bankruptcy, but is not usually the choice unless an individual possess significant assets and debt. This is often an individual who owns a few rental houses or a small business. Most individuals fall into a Chapter 7 or Chapter 13 filing.
Our experienced Arlington personal bankruptcy lawyer can counsel you on which bankruptcy options are available and which is best for you. If bankruptcy is not an option, we will work to negotiate debt repayment with individual creditors. To start, you can schedule an appointment with a lawyer by calling 817-704-3984 or email.
Contact our Personal Bankruptcy Lawyer
To learn more about whether filing for bankruptcy protection can benefit you or your business, call Norred Law PLLC at 817-704-3984 to speak with an Arlington bankruptcy lawyer. You can also contact us online. We look forward to assisting you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.